Surf N Waves planned to sell 27,000 surfboards, however the actual number sold totalled 23,000.Which one of the following provides the best comparison of the cost data associated with the sales?

Question

Quizplus · Accepted Answer

Budgeting based on the actual level of activity (23,000 units) will provide the most accurate comparison of cost data associated with the sales. Basing the budget on the original planned level of activity or the master budget level of activity (which may be different from the actual level of activity) may result in inaccurate budgeting and therefore inaccurate comparisons of cost data.

Surf N Waves Planned to Sell 27,000 Surfboards, However the Actual